0:00:02 > 0:00:04- Welcome to the programme.- If you have ever tried to buy a property,
0:00:04 > 0:00:07but got caught in the dreaded property chain,
0:00:07 > 0:00:09you'll know what a complete nightmare it can be.
0:00:09 > 0:00:11Oh! So how can you avoid that situation?
0:00:11 > 0:00:14One way to cut through the chain
0:00:14 > 0:00:17is to buy your next home under the hammer.
0:00:42 > 0:00:45People go to auction with all types of budgets,
0:00:45 > 0:00:47looking for all sorts of different properties.
0:00:47 > 0:00:51There is an enormous choice of properties available so,
0:00:51 > 0:00:53what inspired the buyers on today's show?
0:00:55 > 0:00:57This could be a perfect first home in Surrey,
0:00:57 > 0:00:59but you'd better tread carefully.
0:00:59 > 0:01:01Maybe that's been laid too tight
0:01:01 > 0:01:05or there is something more sinister going on underneath.
0:01:05 > 0:01:08And over in Merseyside, this three-bedroom semi-detached
0:01:08 > 0:01:12house was up for auction for just £50,000, but with good reason.
0:01:12 > 0:01:13We'll find out why.
0:01:16 > 0:01:20A 60 to £70,000 guide price sounds a lot for this bit of land in Kent,
0:01:20 > 0:01:23but wait till you see the moneymaking plans it comes with.
0:01:26 > 0:01:29All these properties have been sold at auction
0:01:29 > 0:01:32and we'll find out who bought them and what they paid for them
0:01:32 > 0:01:34when they went under the hammer.
0:01:34 > 0:01:35Sold.
0:01:39 > 0:01:42Just 19 miles from Greater London is the booming
0:01:42 > 0:01:45area of Redhill in Surrey.
0:01:45 > 0:01:49Redhill has got an explosive claim to fame.
0:01:49 > 0:01:54Back in 1867, Alfred Nobel demonstrated
0:01:54 > 0:01:58dynamite for the first time in a nearby quarry.
0:01:58 > 0:02:01Let's hope the property I'm here to see is not a complete
0:02:01 > 0:02:03demolition job.
0:02:03 > 0:02:06The house we're here to see is situated about three
0:02:06 > 0:02:09miles from Redhill in an area known as Salfords.
0:02:09 > 0:02:13There are local shops and a train station close by. Sound good?
0:02:14 > 0:02:17But the trouble with being so close to a train station is that
0:02:17 > 0:02:20you are often also close to a train track.
0:02:20 > 0:02:25In this instance, the line runs right past the side of the property.
0:02:25 > 0:02:28So here's the house, it is a three-bed end of terrace.
0:02:28 > 0:02:32It had a guide price of £175,000.
0:02:32 > 0:02:36It's got quite an overgrown front garden here, but I think it is
0:02:36 > 0:02:39right for turning into some handy off-street parking.
0:02:39 > 0:02:41Let's look inside the house.
0:02:41 > 0:02:44I can already see there's double glazing. Good,
0:02:44 > 0:02:46that should keep the train noise out.
0:02:46 > 0:02:48# I said shake rattle and roll... #
0:02:50 > 0:02:53Surprisingly, there's a lot of internal space that
0:02:53 > 0:02:57I didn't expect here. Really nice-sized lounge.
0:02:57 > 0:03:01You've got a little downstairs loo and a fantastic kitchen!
0:03:01 > 0:03:03I love this because - look!
0:03:03 > 0:03:05There's loads of room over there,
0:03:05 > 0:03:08you can call it an eat-in kitchen. Plenty of room for a table.
0:03:08 > 0:03:12All you would need to do really is put a new kitchen in.
0:03:12 > 0:03:14Worried about the floor.
0:03:14 > 0:03:15Maybe that's been laid too tight
0:03:15 > 0:03:18or there is something more sinister going on underneath.
0:03:18 > 0:03:20But the footprint of this property is brilliant,
0:03:20 > 0:03:22there's a lot you could do in time.
0:03:22 > 0:03:24You could open out this wall,
0:03:24 > 0:03:27you could put bi-folding doors leading out to the garden.
0:03:27 > 0:03:30But as it is, it's got a really nice feel about it.
0:03:30 > 0:03:33It could be a really good family home.
0:03:33 > 0:03:37Someone has clearly started trying to refurbish the house.
0:03:37 > 0:03:39With a new kitchen partly installed.
0:03:41 > 0:03:45New electrics, new flooring and a new toilet.
0:03:51 > 0:03:55And the same story upstairs in the bathroom.
0:03:55 > 0:03:57And in the three good-sized bedrooms,
0:03:57 > 0:04:01all of which potentially gives the new owner a head start.
0:04:01 > 0:04:05But as always, particularly with the electrics and plumbing,
0:04:05 > 0:04:08get them checked out by a professional.
0:04:08 > 0:04:11And the best mantra is, when in doubt, rip it out.
0:04:13 > 0:04:16Now, the auction catalogue also mentioned the potential to
0:04:16 > 0:04:19extend out the back. And look!
0:04:19 > 0:04:22There is a huge garden so there certainly would be room to
0:04:22 > 0:04:25add a ground-floor extension out here.
0:04:25 > 0:04:28In the past, permitted development allowed you to come
0:04:28 > 0:04:33out by just 3m on an attached house like this but planning regulations
0:04:33 > 0:04:38have now changed recently and now the limit has increased to 6m.
0:04:38 > 0:04:42That is huge but there are still some restrictions, and bigger
0:04:42 > 0:04:47extensions are subject to a neighbourhood consultation scheme.
0:04:47 > 0:04:49So permission is not guaranteed.
0:04:49 > 0:04:52But a bit more square footage would really add value
0:04:52 > 0:04:55and certainly improve that property.
0:04:57 > 0:04:59So that's a call to the planning department needed.
0:04:59 > 0:05:03But there is no doubt there are tons of opportunities to add value
0:05:03 > 0:05:06to this house, guided at 175,000.
0:05:11 > 0:05:15But what did the local estate agent make of what was on offer here?
0:05:15 > 0:05:17My first thoughts with the property, it's a nice spacious home,
0:05:17 > 0:05:20good-sized room proportions.
0:05:20 > 0:05:23I think it would be ideal for a family once it's
0:05:23 > 0:05:24all in the right condition.
0:05:24 > 0:05:27If there are any negatives, it is that there is a
0:05:27 > 0:05:29train line just beside the house.
0:05:29 > 0:05:32Which... It's there, someone would just have to take a view on it.
0:05:33 > 0:05:37Yes, you can't do much about the trains but you can change the house.
0:05:37 > 0:05:40So what would be the best way of maximising the financial
0:05:40 > 0:05:41returns from the property?
0:05:43 > 0:05:45There could be value added by extending,
0:05:45 > 0:05:49but I think to get the best return, probably better just
0:05:49 > 0:05:54refurbishing the existing building rather than extending at this stage.
0:05:54 > 0:05:58OK, let's talk numbers on this house that was guided at 175,000.
0:05:59 > 0:06:00I think once finished,
0:06:00 > 0:06:05the property could resale in the current market for £275,000.
0:06:05 > 0:06:08I think if the property were revamped to a good condition,
0:06:08 > 0:06:14current rental would be £1,100 to £1,150 per calendar month.
0:06:19 > 0:06:22So this is a decent-sized end of terrace with
0:06:22 > 0:06:26room for improvement and a plot that I think would suit keen gardeners.
0:06:26 > 0:06:28But will that train track put some people off?
0:06:28 > 0:06:30Let's see who's out there ready to take on this
0:06:30 > 0:06:32challenge as we head to auction.
0:06:34 > 0:06:37Move down to Redhill.
0:06:37 > 0:06:40Like this property, 170.
0:06:40 > 0:06:42Thank you. 170. 175.
0:06:42 > 0:06:45175. 180.
0:06:46 > 0:06:49185. 190.
0:06:49 > 0:06:51195.
0:06:52 > 0:06:54200. 205.
0:06:56 > 0:07:00205? 202, yeah? 204.
0:07:02 > 0:07:04206.
0:07:05 > 0:07:08208. Elsewhere, 210. New spot.
0:07:08 > 0:07:10212.
0:07:10 > 0:07:12214.
0:07:12 > 0:07:13216.
0:07:14 > 0:07:17218.
0:07:17 > 0:07:18220.
0:07:18 > 0:07:222? 224.
0:07:22 > 0:07:25224. 226.
0:07:27 > 0:07:29228. 228.
0:07:29 > 0:07:31230.
0:07:31 > 0:07:33Round it off to 230? Must do it.
0:07:33 > 0:07:37Have a think. Back to you. 228.
0:07:37 > 0:07:40First time. Second time.
0:07:40 > 0:07:43Third and last time. Have you all done?
0:07:45 > 0:07:47Sold, 228. Got there, well done.
0:07:47 > 0:07:51And so for £228,000, the successful bidders
0:07:51 > 0:07:55for the three-bedroom Redhill house were Steven and wife Jan.
0:07:55 > 0:08:00Steven and Jan run a property developing business together
0:08:00 > 0:08:03and this will be their sixth property renovation.
0:08:03 > 0:08:07One of their two daughters, Hayley, came along with fiance Aaron.
0:08:07 > 0:08:11They had a mooch round the property while Steven fills me in on the plan.
0:08:12 > 0:08:14Steven, congratulations.
0:08:14 > 0:08:17What's your reason behind you wanting to buy this property?
0:08:17 > 0:08:20My daughter has always looked at houses that we have
0:08:20 > 0:08:23done up in the past and really likes them.
0:08:23 > 0:08:26I kind of promised that if we found one that suited, you know,
0:08:26 > 0:08:31we would let her get into one and help her onto the property market.
0:08:31 > 0:08:32Wow! Lucky girl.
0:08:32 > 0:08:36- Did she get a chance to look at this prior to the auction?- She did. Yeah.
0:08:36 > 0:08:39- What was her reaction when she saw it for the first time?- She loved it.
0:08:39 > 0:08:42As soon as she came in, she really loved it.
0:08:50 > 0:08:52Yeah, it is tough to get on the property ladder
0:08:52 > 0:08:57so this is a great support from Stephen and his wife Jan
0:08:57 > 0:09:01and the plan is to initially rent the property to Hayley and Aaron
0:09:01 > 0:09:05and when they can afford to, they will buy the house back from them.
0:09:05 > 0:09:07So do you have building experience?
0:09:07 > 0:09:11Erm, not personally myself, but we've got a good team of builder and the full team.
0:09:11 > 0:09:16Just stumbled upon them because we were doing our own kitchen at home.
0:09:16 > 0:09:18- OK.- They were all on the job and I spoke to them
0:09:18 > 0:09:21- about what I intended to do and it went from there really.- Fantastic.
0:09:21 > 0:09:25- So now you use them for all your projects?- For all the projects, yes.
0:09:25 > 0:09:26With your developers head on,
0:09:26 > 0:09:29what could you do to really change this place?
0:09:29 > 0:09:31I think extending out the back is possible.
0:09:31 > 0:09:34But I think for my daughter, to keep
0:09:34 > 0:09:37the cost down at the moment, we're just going to renovate it,
0:09:37 > 0:09:41so new bathroom, new fitted kitchen, decoration throughout.
0:09:41 > 0:09:45How do you think it will work with Hayley being directly involved?
0:09:45 > 0:09:48How much control will you give her and Aaron?
0:09:48 > 0:09:51Yeah, they can have more or less full control of choosing as long as
0:09:51 > 0:09:54they give me the materials on time.
0:09:54 > 0:09:57Steven wants to get the work done in 8 to 10 weeks
0:09:57 > 0:10:00so if he is project manager I thought it was time
0:10:00 > 0:10:03I caught up with his clients, daughter Hayley who is a beauty
0:10:03 > 0:10:08therapist and her fiance Aaron, who is a ground works manager.
0:10:08 > 0:10:11They're the ones who will be funding the work here.
0:10:11 > 0:10:17Hayley and Aaron, you lucky devils. How fantastic is this for you guys?
0:10:17 > 0:10:20- Really excited.- Can't wait.
0:10:20 > 0:10:22- Is this going to be your first home together?- It is, yeah.
0:10:22 > 0:10:25- Yeah. We still both live at home. - You both live at home?
0:10:25 > 0:10:27So how's your mum and dad going to feel about this?
0:10:27 > 0:10:29I think they're quite excited about it.
0:10:29 > 0:10:32Yeah, I think they will be happy to get me out of the house.
0:10:32 > 0:10:35- What about you?- The same, my sister can't wait to have my bedroom.
0:10:35 > 0:10:36And my wardrobe.
0:10:36 > 0:10:39Tell me, Hayley, what are the changes you need to make before you
0:10:39 > 0:10:42- guys can move in here? Because it's not in bad nick, is it?- No.
0:10:42 > 0:10:46Kitchen, bathrooms. And the floor.
0:10:46 > 0:10:50Really there's not a huge amount to do. The walls are all OK.
0:10:50 > 0:10:54Have you made lists? Have you seen kitchens, do you know what kind of thing...?
0:10:54 > 0:10:57Yeah, we've picked the kitchen. We've got two bathrooms.
0:10:57 > 0:11:01How much money or budget have you got to make this home?
0:11:01 > 0:11:05I'm guessing you guys don't have sofas and table and chairs
0:11:05 > 0:11:08and all the things you need to furnish a house?
0:11:08 > 0:11:13We've got a few bits, but, no, we haven't got sofas. We've got a bed!
0:11:13 > 0:11:15- About 10 to 12,000.- Yeah.
0:11:15 > 0:11:19- Have you guys been saving up? - We have, yes. Yeah.
0:11:19 > 0:11:22- So what are you most looking forward to?- Just moving in, I can't wait.
0:11:22 > 0:11:27Just want to get stuck in now. Get the project going and get in there as quickly as we can.
0:11:27 > 0:11:30Guys, good luck. I can't wait to see you in your first home together.
0:11:30 > 0:11:33- Thank you.- And congratulations on the engagement.- Thank you.
0:11:33 > 0:11:36- That's really good news. Well done. Lovely to meet you.- Thanks, you too.
0:11:36 > 0:11:42# ..a new day, it's a new life for me
0:11:42 > 0:11:45# And I'm feeling good... #
0:11:48 > 0:11:51Well, Steven and his wife are keen to give their daughter Hayley
0:11:51 > 0:11:53and Aaron a leg up onto the property ladder,
0:11:53 > 0:11:57this could be a perfect first home for them,
0:11:57 > 0:12:00but there is a bit of work to do before they can move in.
0:12:00 > 0:12:04Let's find out how this family get on creating that perfect home
0:12:04 > 0:12:05later in the programme.
0:12:08 > 0:12:09Liverpool.
0:12:09 > 0:12:13Land of the Beatles and the Liver Birds. Gerry and The Pacemakers
0:12:13 > 0:12:17forever immortalised the River Mersey with their famous lyrics.
0:12:17 > 0:12:21# So ferry across the Mersey
0:12:21 > 0:12:25# Cos this land's the place I love
0:12:25 > 0:12:28# And here I'll stay... #
0:12:28 > 0:12:31Well, through the Mersey Tunnel from Liverpool or across
0:12:31 > 0:12:36on the famous Mersey Ferry, and you find yourself in the Wirral.
0:12:36 > 0:12:39Now, property prices here have traditionally been a bit higher
0:12:39 > 0:12:43than in other parts of Merseyside so it's great to hear about this.
0:12:43 > 0:12:49£50,000 plus was the guide price, a three-bedroom semi-detached,
0:12:49 > 0:12:51got to be worth a look.
0:12:51 > 0:12:53The house is in the very popular Prenton area
0:12:53 > 0:12:56and not at all far from Birkenhead.
0:12:56 > 0:12:58The house has its own separate garage
0:12:58 > 0:13:01and seems really good value for money.
0:13:01 > 0:13:05It looks just great, almost incredibly so.
0:13:15 > 0:13:17Ahhh! That'll be why it is cheaper then.
0:13:17 > 0:13:22It comes with one unexpected optional extra - an interior.
0:13:22 > 0:13:26Yeah! You've basically got a shell. Wow!
0:13:26 > 0:13:30It's not often you see this. If you like open plan living, this is...
0:13:30 > 0:13:33Well, going to be right up your street.
0:13:33 > 0:13:35Through the kitchen, well,
0:13:35 > 0:13:37I'm imagining that was the kitchen, into what
0:13:37 > 0:13:41I imagine was the hall where there used to be probably quite
0:13:41 > 0:13:44a nice living area here and then probably through another area
0:13:44 > 0:13:48here into what was the other side of the lounge.
0:13:48 > 0:13:51Come on, it's a big open space. I like it actually.
0:13:51 > 0:13:54I certainly like those windows,
0:13:54 > 0:13:57those big sliding patio doors looking out onto the garden.
0:13:57 > 0:14:03Erm... It is without doubt a blank canvas on which you can paint.
0:14:06 > 0:14:09You could channel your inner Michelangelo.
0:14:09 > 0:14:12Designing an entire original interior here.
0:14:12 > 0:14:15However, before we get all creative, a word of caution.
0:14:15 > 0:14:18I'd want to get a structural assessment to ensure it's not
0:14:18 > 0:14:20going to fall about your ears.
0:14:25 > 0:14:31Well, upstairs and the extreme open plan living ethic continues.
0:14:31 > 0:14:36Lots of space. Again, three good-sized double bedrooms.
0:14:36 > 0:14:40One there, maybe not big but half decent sized bedroom there,
0:14:40 > 0:14:41and a big one at the back.
0:14:41 > 0:14:45This is obviously where the loo was at one stage.
0:14:45 > 0:14:48So given that most of the walls have been taken out,
0:14:48 > 0:14:50you have got literally that blank canvas,
0:14:50 > 0:14:52so you could think about playing around with the layout.
0:14:52 > 0:14:57I think the house is big enough to warrant and work as a four bed,
0:14:57 > 0:15:00so that is something I would consider.
0:15:00 > 0:15:01And certainly the layout here,
0:15:01 > 0:15:04you've got two windows in this room, so put a dividing wall here.
0:15:04 > 0:15:08Again, in some ways it's quite refreshing to have it
0:15:08 > 0:15:14as a sort of...something you can kind of play with as you want.
0:15:15 > 0:15:18So, you could have four smaller bedrooms here and add value,
0:15:18 > 0:15:23or have a lovely spacious three bed. However, first things first.
0:15:23 > 0:15:25With no bathroom and no kitchen,
0:15:25 > 0:15:27this is probably for cash buyers only.
0:15:31 > 0:15:34Well, these sliding doors really are quite spectacular
0:15:34 > 0:15:37but, erm, bit of a design flaw.
0:15:37 > 0:15:38It's about a... Oh!
0:15:39 > 0:15:42..two-foot drop to get onto the patio
0:15:42 > 0:15:46but it does lead out to a pretty decent sized garden.
0:15:46 > 0:15:51Well, so I'm led to believe. It's down here somewhere.
0:15:51 > 0:15:54But judging by the state of the rest of that,
0:15:54 > 0:15:57and that I didn't bring my machete today...
0:15:57 > 0:16:01I think I'll just believe them that it's pretty big.
0:16:01 > 0:16:06So, a shell of a house with hardly any internal walls or surfaces.
0:16:06 > 0:16:08And an enormous garden in need of being tamed.
0:16:11 > 0:16:14What does a local property expert think of our property
0:16:14 > 0:16:15in popular Prenton?
0:16:18 > 0:16:21The property itself has got great potential for development.
0:16:21 > 0:16:24It can certainly add some value for this property,
0:16:24 > 0:16:26ideal for a builder to purchase,
0:16:26 > 0:16:30add some value by refurbishing the property, and then either
0:16:30 > 0:16:35letting the property or selling the property on for a potential profit.
0:16:37 > 0:16:41It has a guide price of £50,000 plus. How would he value it?
0:16:43 > 0:16:49I would value this property with the work completed at £130-140,000.
0:16:51 > 0:16:53But if a new buyer wanted it as an investment,
0:16:53 > 0:16:56what kind of rental could it attract?
0:16:56 > 0:16:58For rental purposes,
0:16:58 > 0:17:03I would value this property at £650 per calendar month as a three bed,
0:17:03 > 0:17:06if it was reinstated as a three bed semi-detached family home.
0:17:07 > 0:17:12So, is there a demand for properties like this in this area?
0:17:12 > 0:17:14I would say there is a good demand at the moment,
0:17:14 > 0:17:18either from owner/occupiers to purchase property to live in
0:17:18 > 0:17:20themselves or from tenants.
0:17:20 > 0:17:24Certainly a large increase in mortgage availability recently
0:17:24 > 0:17:26that has reactivated the housing market.
0:17:26 > 0:17:31But there's also a large number of people who cannot afford to buy
0:17:31 > 0:17:33or simply don't want to buy,
0:17:33 > 0:17:37and this type of family property is ideal for those types of tenants.
0:17:38 > 0:17:42Well, this is a classic case of a house that will be really nice
0:17:42 > 0:17:43when it's finished.
0:17:43 > 0:17:46And for somebody with a bit of experience, the fact that
0:17:46 > 0:17:49it's a work-in-progress could actually be quite a good thing.
0:17:49 > 0:17:53Let's see who went for it when it went under the hammer.
0:17:53 > 0:17:56It was one of the last lots up for sale at this auction,
0:17:56 > 0:17:58so the crowd had thinned.
0:17:58 > 0:18:03Lot number 34, £50,000, who is here? 50?
0:18:03 > 0:18:0450 here straight in,
0:18:04 > 0:18:10at 50 I'm bid now. In ones. At £50,000. Are we done at 50?
0:18:10 > 0:18:13At £50,000 then, for lot 34.
0:18:14 > 0:18:1551.
0:18:15 > 0:18:1752. 53.
0:18:17 > 0:18:21The bidding moved quickly past that £50,000 guide price
0:18:21 > 0:18:25and we rejoin it when it reached 78,000.
0:18:25 > 0:18:2778, 79.
0:18:27 > 0:18:2880.
0:18:29 > 0:18:31Shake of the head.
0:18:31 > 0:18:35At £79,000. For the first time. Are you sure?
0:18:35 > 0:18:37It's with you, sir, it's against you.
0:18:37 > 0:18:41At £79,000 for the second time, back in at 80.
0:18:41 > 0:18:4481. 82.
0:18:44 > 0:18:46With you at 81.
0:18:46 > 0:18:49At £81,000. First time.
0:18:49 > 0:18:53At £81,000, second time.
0:18:53 > 0:18:5582. 83.
0:18:55 > 0:19:0184. 85. 85 I've got. 86. Shake of the head.
0:19:01 > 0:19:03With you at 85.
0:19:03 > 0:19:06At £85,000. First time.
0:19:06 > 0:19:09At £85,000, second time.
0:19:09 > 0:19:13All done, all out, with you then at £85,000.
0:19:13 > 0:19:15Third and final time, selling away then.
0:19:16 > 0:19:19Well done, sir. 693.
0:19:19 > 0:19:25Paying £85,000, 35,000 over the guide price, is Joe.
0:19:30 > 0:19:33I met Joe and his mum Sally back at the property to find out what
0:19:33 > 0:19:37he plans to do with this, his first auction purchase.
0:19:37 > 0:19:42- Sally, Joe, good to meet you both. - And you.- Congratulations.- Thank you.
0:19:42 > 0:19:45Got yourself an interesting project here.
0:19:45 > 0:19:47Tell me why you wanted to buy this house.
0:19:47 > 0:19:50I just thought it was a really good opportunity to get myself
0:19:50 > 0:19:54- on the property market. - Why this house in particular?
0:19:54 > 0:19:59I just thought it had lots of aspects ready and waiting to be done.
0:19:59 > 0:20:03Most of it is in here, all structurally sound
0:20:03 > 0:20:06- and we just do cosmetic work to it. - Right.
0:20:06 > 0:20:10- So what's your involvement in all of this, Sally?- General dogsbody!
0:20:10 > 0:20:14- Fetcher, carrier, cleaner-upper. - Is it a family project, then?
0:20:14 > 0:20:18- No. No. Just Joe.- It's just me. Just here for moral support, really.
0:20:18 > 0:20:21- Right. So what do you do? - I am an electrician by trade.
0:20:21 > 0:20:25- OK. Working full-time?- Yes. - So what is this, a part-time thing?
0:20:25 > 0:20:28Yeah. Just weekends, evenings, any spare time I get, really.
0:20:28 > 0:20:30Tell me what you're going to do to it then.
0:20:30 > 0:20:34Well, I'm going to start with the electrics, new central heating,
0:20:34 > 0:20:35new bathrooms.
0:20:35 > 0:20:37New kitchen. Plaster.
0:20:37 > 0:20:39And hopefully we are there.
0:20:45 > 0:20:48And is Joe at all fazed by the absence of a few walls
0:20:48 > 0:20:50here and there?
0:20:50 > 0:20:55It's pretty good, to be honest. It's a pretty easy start.
0:20:55 > 0:20:57And from an electrician's point of view,
0:20:57 > 0:21:00- easy peasy because you've got easy access...- Ideal.
0:21:00 > 0:21:02No moving furniture and carpets.
0:21:02 > 0:21:05What did you like about it when you first saw it?
0:21:05 > 0:21:09I think it's in a good position. It's got a really big back garden.
0:21:09 > 0:21:14And it's sunny in the back and there's a possibility of turning it
0:21:14 > 0:21:19from a three to a four bedroom by splitting the back bedroom into two.
0:21:19 > 0:21:20Right. OK.
0:21:20 > 0:21:24The front bedroom is quite big, so could become the master.
0:21:25 > 0:21:28So... but it might be better for rental.
0:21:28 > 0:21:31And rental is the name of the game here.
0:21:31 > 0:21:34Joe is hoping that this will get his pension portfolio off
0:21:34 > 0:21:37to a good start. With a three to four month timescale,
0:21:37 > 0:21:40he has got a budget of 10 to 15 grand, but don't forget,
0:21:40 > 0:21:44this house has no kitchen, bathroom or, er, walls.
0:21:44 > 0:21:47But he will be doing most of the work himself
0:21:47 > 0:21:49with a little help from friends and family
0:21:49 > 0:21:52on his evenings and weekends, so that should save some cash.
0:21:52 > 0:21:55Although you do always have to weigh that up with the rental
0:21:55 > 0:21:59you're losing if it takes you a bit of time to get the work done.
0:21:59 > 0:22:02Will mum Sally be offering more than moral support?
0:22:02 > 0:22:05Are you going to get involved in some of the design
0:22:05 > 0:22:07and the colour schemes and things like that?
0:22:07 > 0:22:09Possibly the design and colour schemes.
0:22:09 > 0:22:13- But it depends if I'm allowed! - Always needs a woman's touch.
0:22:13 > 0:22:17Well, I hope Sally is handy with a lawn mower, because while
0:22:17 > 0:22:22the inside is a wide-open space, the same can't be said for the outside.
0:22:26 > 0:22:29There's a few bits and pieces outside that need to be sorted,
0:22:29 > 0:22:32not least the garden, and a rather precipitous drop at the front.
0:22:32 > 0:22:34What are you going to do about those?
0:22:34 > 0:22:38We're going to basically rake all the garden out, see what is actually
0:22:38 > 0:22:42there, and in the front we are going to put a fence around it.
0:22:42 > 0:22:43So it makes it into a back yard.
0:22:43 > 0:22:46What is the rental potential, do you think?
0:22:46 > 0:22:50Something in the region of probably 600 per calendar month.
0:22:50 > 0:22:51We hope.
0:22:51 > 0:22:54So in terms of what you paid, by the time you've factored
0:22:54 > 0:22:58in your costs and everything, a half decent return?
0:22:58 > 0:23:02- Yeah. We hope so.- Are you happy with what you paid?- Yeah.
0:23:02 > 0:23:05I would have liked to get it cheaper, but wouldn't everyone?
0:23:05 > 0:23:08Ha! That's some property developers for you -
0:23:08 > 0:23:11always wanting it for less than was paid.
0:23:11 > 0:23:14But I reckon Joe has made himself a smart investment here.
0:23:14 > 0:23:18Other than what we can see, the structure of the building,
0:23:18 > 0:23:20- as far you as you can make out, is pretty good?- It's ideal.
0:23:20 > 0:23:22Has this inspired you to do other stuff?
0:23:22 > 0:23:26- We'll wait and see how this goes, but hopefully.- Congratulations.
0:23:26 > 0:23:27Thank you very much.
0:23:27 > 0:23:29Good luck, and we look forward to seeing how you get on.
0:23:29 > 0:23:31- OK, thank you.- Thank you.
0:23:34 > 0:23:37Well, Joe seems to know exactly what he needs to do
0:23:37 > 0:23:39to sort this place out.
0:23:39 > 0:23:42And he doesn't seem at all fazed by it.
0:23:42 > 0:23:44Very useful being an electrician, that's for sure.
0:23:44 > 0:23:47How will he get on with the help of the rest of the family?
0:23:47 > 0:23:49You can find out later in the show.
0:23:51 > 0:23:55Coming up, we'll be finding out how this plot of land in Kent
0:23:55 > 0:24:00managed to see its value rocket to over half a million pounds.
0:24:01 > 0:24:05And back to Merseyside to find behind many a good builder
0:24:05 > 0:24:09- is his mum.- I've had to do all of the cleaning after him. Fetch, carry.
0:24:09 > 0:24:10Do the tea.
0:24:15 > 0:24:17Back now to Redhill in Surrey.
0:24:17 > 0:24:20And this partially renovated three bed end-of-terrace
0:24:20 > 0:24:22which property developer Steven
0:24:22 > 0:24:26and his wife bought at auction for 228,000.
0:24:26 > 0:24:30They bought the property as a first home for daughter Hayley
0:24:30 > 0:24:31and her fiance Aaron.
0:24:34 > 0:24:37My daughter has always looked at houses that we have done up
0:24:37 > 0:24:39in the past and really liked them
0:24:39 > 0:24:43and I kind of promised that if we found one that suited, she would,
0:24:43 > 0:24:48we would let her get into one and help her onto the property market.
0:24:48 > 0:24:51Wow. Did she get a chance to look at this prior to the auction?
0:24:51 > 0:24:52She did, yes.
0:24:52 > 0:24:55And what was her reaction when she saw it for the first time?
0:24:55 > 0:24:58She loved it as soon as she came in. She really loved it.
0:24:58 > 0:25:02Steven had trusted builders ready to transform the house
0:25:02 > 0:25:04in a two month timescale,
0:25:04 > 0:25:08although the young couple were ready to roll their sleeves up too.
0:25:08 > 0:25:10Hayley and Aaron, you lucky devils.
0:25:10 > 0:25:15- I mean, how fantastic is this for you guys?- Really exciting.
0:25:15 > 0:25:16Can't wait.
0:25:16 > 0:25:20How much money or budget have you got to kind of make this home?
0:25:20 > 0:25:24Because I'm guessing you guys don't have sofas and table
0:25:24 > 0:25:26and chairs and all the things you need to furnish a house.
0:25:26 > 0:25:29Got a few bits, but no, we haven't got sofas and stuff.
0:25:29 > 0:25:31But we've got a bed!
0:25:31 > 0:25:36- About 10-12,000.- So what are you most looking forward to?
0:25:36 > 0:25:38Just moving in. I can't wait.
0:25:38 > 0:25:41I just want to get stuck in now, get the project going
0:25:41 > 0:25:43and get in there as quick as we can.
0:25:43 > 0:25:4716 weeks after our first visit, we're back, to see if Hayley
0:25:47 > 0:25:51and Aaron have made a home out of the end-of-terrace house.
0:25:51 > 0:25:56# Open the doors and windows
0:25:56 > 0:26:00# Whole world inside these four walls
0:26:00 > 0:26:05# More than a building Floor to the ceiling
0:26:05 > 0:26:08# A picture of love
0:26:08 > 0:26:11# That's this house
0:26:13 > 0:26:15# That's this house
0:26:17 > 0:26:20# That's this house. #
0:26:20 > 0:26:24Ah! Homely with a capital H, I'd say!
0:26:24 > 0:26:27But this has been more than just a cosmetic job.
0:26:28 > 0:26:31Done quite a bit, to be honest, we've renewed all the doors
0:26:31 > 0:26:35in the house. Obviously redecorated everywhere.
0:26:35 > 0:26:36Quite a bit of plastering,
0:26:36 > 0:26:39completely renewed the bathrooms,
0:26:39 > 0:26:43the cloakroom, kitchen. Flooring.
0:26:43 > 0:26:46- Radiators.- Yes, the boiler.
0:26:46 > 0:26:49There have been so many changes, the whole house basically.
0:26:50 > 0:26:53And true to their word, both Aaron
0:26:53 > 0:26:56and Hayley have played their part in the renovation.
0:26:56 > 0:27:00It's been really hard work, I've helped with painting and stuff
0:27:00 > 0:27:03and a lot of the coving and skirtings and all that.
0:27:03 > 0:27:06You've done a lot outside as well.
0:27:06 > 0:27:11Yeah, get everything sort of cut back outside so that it is usable.
0:27:11 > 0:27:15Get all the driveway clear. Some of the fencing.
0:27:15 > 0:27:19Some of the groundwork. Again, a bit of everything, to be honest.
0:27:20 > 0:27:24They are just waiting for the all clear from the council to
0:27:24 > 0:27:25drop the kerb.
0:27:25 > 0:27:28But off-street parking will be a real bonus here.
0:27:29 > 0:27:32They'll finish landscaping the back garden in the spring,
0:27:32 > 0:27:36but they must be so delighted with the way the house has turned out.
0:27:36 > 0:27:39We absolutely love it at the moment.
0:27:39 > 0:27:42I don't think Hayley will want to do it again any time soon,
0:27:42 > 0:27:44so I think we will be here for quite a while.
0:27:44 > 0:27:48And thanks in no small part to Steven, dad to Hayley,
0:27:48 > 0:27:52father-in-law-to-be to Aaron, and now landlord to the two of them.
0:27:53 > 0:27:56Yeah, it's been good working with Dad.
0:27:56 > 0:27:57We've all worked well together.
0:27:57 > 0:28:00It's nice we've all spent a lot of time together, obviously,
0:28:00 > 0:28:04and working together and compromising.
0:28:04 > 0:28:05Yeah, it's been good.
0:28:06 > 0:28:12So, Dad, how has this project compared to previous property renovations?
0:28:12 > 0:28:16To do it for ourselves rather than just selling the property on is nice.
0:28:16 > 0:28:18Because you're not doing all the work
0:28:18 > 0:28:20and then giving it to someone else, really,
0:28:20 > 0:28:24so it's nice to keep the property in the family after all the hard work.
0:28:24 > 0:28:26Hayley and Aaron had saved up
0:28:26 > 0:28:29and were hoping the renovation would cost around £10-12,000.
0:28:29 > 0:28:33But good old dad did help them out, so what was the final spend?
0:28:33 > 0:28:37We've actually ended up spending 25,000,
0:28:37 > 0:28:41which was quite a bit over our budget.
0:28:41 > 0:28:44But that is because we wanted to make it nicer because,
0:28:44 > 0:28:49as they grew to like the property as it went on, we decided
0:28:49 > 0:28:52we wouldn't cut corners and we've put in nice bits rather than...
0:28:52 > 0:28:54And extra bits that we wouldn't normally do.
0:28:54 > 0:28:56So we knew what we were spending,
0:28:56 > 0:28:59although we've gone probably 10,000 over.
0:28:59 > 0:29:03A spend of £25,000 on top of their purchase price
0:29:03 > 0:29:09of 228,000 brings the total spend here to £253,000.
0:29:12 > 0:29:15We asked along two local estate agents to get
0:29:15 > 0:29:17their take on the renovated end of terrace.
0:29:17 > 0:29:21First up, the agent who saw the property before the work began.
0:29:21 > 0:29:24I think it's completely different to what I have seen before
0:29:24 > 0:29:25and a great make over.
0:29:25 > 0:29:27First impressions of the property is
0:29:27 > 0:29:29it's been brought up to a really high standard.
0:29:29 > 0:29:32It would be snapped up very quickly in the resale market.
0:29:32 > 0:29:34What I like in the property is the way the kitchen works now
0:29:34 > 0:29:37and the space to get the dining area in one end there.
0:29:37 > 0:29:40The selling features for me, the modern fitted kitchen,
0:29:40 > 0:29:46the neutral decor and generally how light and spacious the property is throughout.
0:29:46 > 0:29:50Now clearly Hayley and Aaron are here for the long haul,
0:29:50 > 0:29:55but if they did want to sell the end terrace on, what might it fetch on the resale market?
0:29:56 > 0:30:00I think the resale value of this property could be £290,000.
0:30:00 > 0:30:08I would resale this property on the open market today at somewhere in the region of £300,000 to £305,000.
0:30:08 > 0:30:12Those resale valuations would mean a profit
0:30:12 > 0:30:17before tax and expenses of between £37,000-£52,000.
0:30:17 > 0:30:20But what if the property came up on the rental market?
0:30:20 > 0:30:26I think the rental value of the property would be £1,250 per calendar month.
0:30:26 > 0:30:32I would hope to achieve somewhere in the region of £1,350-£1,400 per calendar month.
0:30:32 > 0:30:36- Yeah, very pleased with those, really.- That is really good. - I am not quite getting that much!
0:30:36 > 0:30:38I was waiting for that!
0:30:41 > 0:30:45On the open rental market the estate agent's valuation would mean a yield of around
0:30:45 > 0:30:49the 6% or 6.5% mark.
0:30:49 > 0:30:54So are we to take it that Hayley is love, love, loving her new home?
0:30:55 > 0:31:00It is weird not being with Mum, Dad and my sister all the time every day,
0:31:00 > 0:31:04but it is nice as well knowing that this is ours and I've got to look after it all,
0:31:04 > 0:31:08you know, and keep it all up.
0:31:08 > 0:31:10It's nice but weird.
0:31:10 > 0:31:11And Dad?
0:31:11 > 0:31:14Yeah, um, it's quieter at home,
0:31:14 > 0:31:19um, so we are missing her a little bit but it is just nice for her to have her own place and
0:31:19 > 0:31:23a nice start on the property ladder, so, I think that's good.
0:31:27 > 0:31:31A small and perfectly formed renovation there.
0:31:31 > 0:31:33But what if you wanted to think bigger?
0:31:33 > 0:31:36This is the characterful Kent village of Teynham.
0:31:36 > 0:31:39It's got local shops and lovely country pubs.
0:31:39 > 0:31:43But if you want high street facilities, Sittingbourne is nearby.
0:31:43 > 0:31:48And the A2 and good train links make this place popular with commuters.
0:31:49 > 0:31:52Teynham has a rather fruity history,
0:31:52 > 0:31:54Richard Harrys lived here.
0:31:54 > 0:31:56He was fruitier to King Henry VIII
0:31:56 > 0:32:00and he ordered the planting of 105 acres of land with
0:32:00 > 0:32:03apples and cherries obtained from abroad.
0:32:03 > 0:32:06So, Teynham was one of the first places in the UK
0:32:06 > 0:32:09where the cherry was grown.
0:32:09 > 0:32:13# Life is just a bowl of cherries
0:32:13 > 0:32:19# So live and laugh at it all. #
0:32:19 > 0:32:22Agriculture is still an important industry here.
0:32:22 > 0:32:26The village is filled with lovely lanes and cottage style properties.
0:32:26 > 0:32:31I'm hoping the lot I'm here to see will be the pick of the crop. And here it is.
0:32:31 > 0:32:35I have to say at first sight, well, it is a bit underwhelming!
0:32:35 > 0:32:42Well, I am here to see, sadly, not a cherry orchard, but this rather scruffy plot of land!
0:32:42 > 0:32:47Now it is situated on this main road that runs between Sittingbourne and Faversham.
0:32:47 > 0:32:51And as you can see, it is busy and it is a rather noisy spot,
0:32:51 > 0:32:56and, well, it is incredibly overgrown in here. So much so that I can't even get in!
0:32:56 > 0:33:00It is so hard to see the full extent of the site.
0:33:00 > 0:33:03But apparently it is 0.08 acres in total,
0:33:03 > 0:33:09so I am going to see if there is a better view of it somewhere.
0:33:09 > 0:33:14# At the edge of a very great fall... #
0:33:14 > 0:33:16The land is on the edge of the main road
0:33:16 > 0:33:19but just round the corner from a train station.
0:33:19 > 0:33:22It is guided at £60,000-£70,000.
0:33:22 > 0:33:24But what do you get for the money?
0:33:24 > 0:33:26Well, let's have a look.
0:33:26 > 0:33:30Bit of a climb here. I do all my own stunts you know!
0:33:30 > 0:33:35Now the site might look like a scruffy patch of land or one big bush,
0:33:35 > 0:33:41but the good news is, well, there is already planning permission in place to build five apartments here,
0:33:41 > 0:33:46consisting of four one-bedders and one two-bed flat,
0:33:46 > 0:33:48which is great news.
0:33:48 > 0:33:52Now, we do know that it is going to be very high spec inside,
0:33:52 > 0:33:56there's going to be lots of skylights so there will be light flooding through the apartments.
0:33:56 > 0:33:58There's going to be corner windows,
0:33:58 > 0:34:02off-street parking, you get one parking space per flat,
0:34:02 > 0:34:05and it's only an hour into central London.
0:34:06 > 0:34:08# Beat another bush
0:34:08 > 0:34:11# Give the man a push. #
0:34:11 > 0:34:16Nope, let's stop beating around the bush and take a look at the plans for this plot of land.
0:34:17 > 0:34:22These architect's drawings detail open plan kitchen and living areas
0:34:22 > 0:34:25and look like a very fair use of the space.
0:34:25 > 0:34:30But with limited access, I'm slightly having to guess the full scope of them.
0:34:30 > 0:34:33I like the look of these though.
0:34:33 > 0:34:37And the buyer could of course resubmit plans to the local council
0:34:37 > 0:34:39if they wanted to make changes or alter the use.
0:34:39 > 0:34:43But as this is a conservation area, that could be costly,
0:34:43 > 0:34:49cause delays, and I think it would be way wiser to go with what's been pre-approved.
0:34:50 > 0:34:53But before anyone gets carried away...
0:34:55 > 0:34:59One issue, though. There is a proviso in the plans,
0:34:59 > 0:35:04you can't develop here until an archaeological study has taken place.
0:35:04 > 0:35:06Which could cause a bit of a delay,
0:35:06 > 0:35:10and, well, you never know what they will find.
0:35:11 > 0:35:14And it is also another thing you have to budget for,
0:35:14 > 0:35:17because the buyer has to pay for the survey.
0:35:17 > 0:35:21What we found today though was a local estate agent
0:35:21 > 0:35:23who came to share his opinion on the plot,
0:35:23 > 0:35:27guided between £60,000 and £70,000,
0:35:27 > 0:35:29and its proposed plans.
0:35:30 > 0:35:33I think the proposal for the contemporary style apartments
0:35:33 > 0:35:35that are going to be built here are a very good idea,
0:35:35 > 0:35:39I think it is a good use of the value of the plot.
0:35:39 > 0:35:40I think building a couple of
0:35:40 > 0:35:43individual style houses wouldn't bring as much of a return.
0:35:43 > 0:35:47So what does he think those potential returns are?
0:35:47 > 0:35:48Firstly, sales.
0:35:48 > 0:35:51If I was to value the flats as per the plans that I have seen
0:35:51 > 0:35:55I would estimate the one bedroom properties to go for...
0:35:55 > 0:35:59I would say around £135,000
0:35:59 > 0:36:03and I would say the two beds, depending on what the presentation is like,
0:36:03 > 0:36:06I would estimate around £150,000.
0:36:06 > 0:36:09And rental?
0:36:09 > 0:36:15I would say the one bedroomed is going to be from about £450-£550 per calendar month
0:36:15 > 0:36:21and I would estimate the two bedrooms between £550-£650 per calendar month.
0:36:21 > 0:36:25So will five flats be built here?
0:36:25 > 0:36:29or will the new owner opt to build something else?
0:36:29 > 0:36:33It all depends on who wanted to buy this little bit of land.
0:36:33 > 0:36:36Let's find out who bid for it at the auction.
0:36:40 > 0:36:42We are on to lot 69 now,
0:36:42 > 0:36:45which is the land in Teynham.
0:36:45 > 0:36:47has anybody got 60 to start me? £60,000.
0:36:47 > 0:36:50I am on the way, 60, just in front of me. 62.
0:36:50 > 0:36:54And 4. 64. And 66, another player, 66,
0:36:54 > 0:36:5868, 70 now if you like. That's 70. And 2.
0:36:58 > 0:37:02And I've spotted you now, 74 as well, there's five of you. 74.
0:37:02 > 0:37:04And 76. 76.
0:37:04 > 0:37:05And 78.
0:37:05 > 0:37:08And £80,000 I've got, 82 I'm looking for.
0:37:08 > 0:37:1181 I've got. And 2.
0:37:11 > 0:37:15You've got a chance to think about it. At 81 it's back with you on the left hand side for the first time.
0:37:15 > 0:37:20For the second time at £81,000.
0:37:20 > 0:37:24Third and final time at £81,000. You're all done.
0:37:24 > 0:37:26It's yours at 81,000.
0:37:28 > 0:37:32That successful bid of £81,000 was made by Mark.
0:37:32 > 0:37:34He's joined forces with his cousin, Tony.
0:37:35 > 0:37:38# Me and my cousins And you and your cousins
0:37:38 > 0:37:41# I can feel it comin'. #
0:37:41 > 0:37:46Electricians by trade, they own and run an electrical contracting company.
0:37:46 > 0:37:50But is this their first attempt at developing property?
0:37:50 > 0:37:53Will sparks fly between the pair?
0:37:53 > 0:37:55I caught up with them to find out more.
0:37:57 > 0:37:58Mark and Tony, congratulations.
0:37:58 > 0:38:01I'd like to say you've bought a wonderful site,
0:38:01 > 0:38:03but I can't really see it.
0:38:03 > 0:38:05You have bought a big bush, haven't you?
0:38:05 > 0:38:08Yeah, in all intents and purposes we have at the moment.
0:38:08 > 0:38:12But hopefully that won't be the case in 10-12 months' time.
0:38:12 > 0:38:16Now, tell me that you did view that prior to the auction.
0:38:16 > 0:38:21- No, we never.- You didn't view it?! - No, we took a massive punt at it.
0:38:21 > 0:38:27OK, so you took a massive punt. How did you know whether it was a good buy or not? You do have
0:38:27 > 0:38:30to literally take a look and see what you've got.
0:38:30 > 0:38:34It was quite good because you had planning already on this plot,
0:38:34 > 0:38:37so we were able to see all the UK planning drawings,
0:38:37 > 0:38:40all the legal documentation added up, and, uh,
0:38:40 > 0:38:44nice feeling in the belly. Bit of a hunch, they call it, I think.
0:38:44 > 0:38:46Calculated risk, we call it.
0:38:46 > 0:38:48Have you ever done anything like this before, guys?
0:38:48 > 0:38:53Um, not building wise, but we are actually in business, in contracting,
0:38:53 > 0:38:56we do quite a lot of big projects
0:38:56 > 0:39:01throughout the Southeast and London. This is quite a new venture for us,
0:39:01 > 0:39:05but we are really... The building thing is our new baby.
0:39:06 > 0:39:09These boys certainly don't believe in thinking small.
0:39:09 > 0:39:13This is a massive undertaking for a first time developer.
0:39:13 > 0:39:16OK, really they should have come to see it, but they did get
0:39:16 > 0:39:21to grips with the paperwork for the plans, which is essential with a piece of land like this.
0:39:21 > 0:39:25With a strong background of seven years in the electrical contracting trade,
0:39:25 > 0:39:28they are sure to have plenty of know-how and contacts.
0:39:28 > 0:39:31They have already got an architect and builder signed up.
0:39:31 > 0:39:35Plus their firm will handle the electrics, which will keep the costs down.
0:39:35 > 0:39:39Firstly, they do need to arrange the archaeological survey,
0:39:39 > 0:39:42and then, assuming they get the OK from that, clear the site
0:39:42 > 0:39:44and get cracking!
0:39:44 > 0:39:45But on what?
0:39:45 > 0:39:49How's it going to work? Are you going to stick with the plans you got at auction, Tony?
0:39:49 > 0:39:52Yes, yes, we are going to stick with the plans.
0:39:52 > 0:39:55Why upset the apple cart when it is already there and,
0:39:55 > 0:39:57we have spoke to estate agents in the area
0:39:57 > 0:40:01and they are pretty positive and everything is adding up at the moment.
0:40:01 > 0:40:04So you didn't want to tweak the plans at all and think about,
0:40:04 > 0:40:07perhaps, two houses or one house?
0:40:07 > 0:40:11- Two flats?- No. There was the option of two cottages on the plot,
0:40:11 > 0:40:15as well, but we see a bigger profit margin with going with the five flats,
0:40:15 > 0:40:19so the outline planning, which we've got, and the hard work's been done.
0:40:19 > 0:40:25The internal works may change when our architect gets involved with construction drawings,
0:40:25 > 0:40:30but the main basis will go to plans that we got with the plot at auction.
0:40:30 > 0:40:33- You are very positive about this. - Very.- Very confident about this.
0:40:33 > 0:40:36Is that the real you? Or inside are you thinking,
0:40:36 > 0:40:41"God, what have we just done? We've just bought five flats and we've got to build them!"
0:40:41 > 0:40:44The only real worry I've got is selling them.
0:40:44 > 0:40:47That's my only worry, really. Building it, you know,
0:40:47 > 0:40:49value wise, the projects we run at the moment
0:40:49 > 0:40:53are the same sort of value so I've got no problem with that.
0:40:53 > 0:40:58Mark and Tony have done their homework, but no matter how prepared you are
0:40:58 > 0:41:00there is always the unexpected.
0:41:00 > 0:41:04In this case there is that archaeological dig.
0:41:04 > 0:41:07The planning does specify that, doesn't it?
0:41:07 > 0:41:12Which, um... Yeah, it could create a few problems, but doing our research yet again, we've looked back
0:41:12 > 0:41:15and there has been properties built on this land before.
0:41:15 > 0:41:18We're reasonably confident nothing will come up, but obviously none of us knows
0:41:18 > 0:41:23what's underground, obviously, when they come to their surveys,
0:41:23 > 0:41:28but again, their costing for their survey has been put in place in our budgeting
0:41:28 > 0:41:32so all being well there won't be no hidden agendas under there.
0:41:32 > 0:41:35So after they get through all that unscathed, Mark and Tony
0:41:35 > 0:41:38have to make sure the flats they plan to build will sell.
0:41:38 > 0:41:42They want to get the build done in 12 months.
0:41:42 > 0:41:45And the quality and level of spec is going to be important here.
0:41:45 > 0:41:50Especially as there are things that can't change, like this busy road.
0:41:50 > 0:41:56So to do all that they've got a £250,000-£270,000 budget.
0:41:56 > 0:41:58Or rather they hope to have.
0:41:58 > 0:42:03We've spoken with banks, we've had various meetings before we went to auction,
0:42:03 > 0:42:08because obviously we'd have had to get funds, whatever we were going to do,
0:42:08 > 0:42:10and the thing is with banks at the moment,
0:42:10 > 0:42:14they're not very loyal to you, if you like, they won't give a lot away.
0:42:14 > 0:42:17They won't put the old offers in principle on the table like a few years back,
0:42:17 > 0:42:21but what they will do is give you an inkling of what they might give you and we've had a few...
0:42:21 > 0:42:23So you've had a nudge and wink
0:42:23 > 0:42:26from the banker and you're going on the strength of that.
0:42:26 > 0:42:29- When are you going to get, you know...- Rubber stamped.
0:42:29 > 0:42:31..money finalised and the rubber stamp on it?
0:42:31 > 0:42:33- Monday.- This Monday?
0:42:33 > 0:42:36- That's when we're going. - Do you have a Plan B in case this doesn't work out?
0:42:36 > 0:42:41Not at present, but we don't look to Plan Bs because we always make Plan A work.
0:42:41 > 0:42:44OK. I like it, I like it and let's hope Plan A does work.
0:42:44 > 0:42:46Let's hope you get the funding from the bank and let's hope
0:42:46 > 0:42:49when you start cutting back there's nothing untoward
0:42:49 > 0:42:53- on that site that's going to make you miserable.- Let's hope so. - Pot of gold would be nice!
0:42:53 > 0:42:55Pot of gold at the end of the rainbow. Guys, good luck,
0:42:55 > 0:43:00- really nice to meet you. Take care. - And you.- Thank you so much. - Thank you.
0:43:00 > 0:43:04I would never recommend going to auction without having the money in place!
0:43:04 > 0:43:06It's a risk, and that's not all.
0:43:06 > 0:43:08This is electrician Mark
0:43:08 > 0:43:12and Tony's first step into property developing and it's a big one!
0:43:12 > 0:43:14Because these two have plunged straight in
0:43:14 > 0:43:18and planned to build five flats as their first ever project.
0:43:18 > 0:43:22I think the duo have a very steep learning curve ahead of them,
0:43:22 > 0:43:24they haven't even got the funds to build yet,
0:43:24 > 0:43:29and I'm worried that they might not be able to sell what they build.
0:43:29 > 0:43:34How will the cousins get on? You can find out later on in the programme.
0:43:37 > 0:43:39Well, time has passed
0:43:39 > 0:43:43and we are hoping that money has been well spent and the correct decisions made.
0:43:43 > 0:43:47Let's go back to the properties and find out what's happened to them.
0:43:47 > 0:43:50Back over to the Wirral on Merseyside now, where earlier
0:43:50 > 0:43:54we met electrician Joe and his mum, Sally.
0:43:54 > 0:43:58Joe bought this property for £85,000 at auction.
0:43:58 > 0:44:00The house looked fine from the outside,
0:44:00 > 0:44:03but on the inside, well, the elephant in the room was...
0:44:03 > 0:44:05there weren't any rooms at all.
0:44:05 > 0:44:08Joe bought himself the blankest canvas I've ever seen.
0:44:08 > 0:44:10Tell me what you're going to do to it, then.
0:44:10 > 0:44:13Well, I'm going to start with the electrics, new central heating,
0:44:13 > 0:44:18new bathrooms, new kitchen, plaster, and then hopefully, we're there.
0:44:18 > 0:44:21And mum Sally's role was clearly defined.
0:44:21 > 0:44:24- What's your involvement in all of this, Sally?- General dogsbody.
0:44:24 > 0:44:27- Right!- Fetcher, carrier, cleaner-upper!
0:44:27 > 0:44:31Sally was also going to add her decorative touch to the property
0:44:31 > 0:44:33once Joe had put the rooms back.
0:44:33 > 0:44:36In fact, he aimed to make this three-bedroom
0:44:36 > 0:44:38a four-bedroom house.
0:44:38 > 0:44:41Joe was going to be doing the work in his spare time,
0:44:41 > 0:44:44and it was four months later we caught up with them
0:44:44 > 0:44:45to see what they'd been up to.
0:44:47 > 0:44:50Oh, look. Actual rooms!
0:44:58 > 0:44:59And true to their word,
0:44:59 > 0:45:03they've squeezed in an extra bedroom up the stairs.
0:45:04 > 0:45:08Last time you were here, this was just one bedroom.
0:45:08 > 0:45:11It's now been split into two, with a wall down the middle
0:45:11 > 0:45:15and the door's been angled to make it more spacious.
0:45:15 > 0:45:19The bathroom wall wasn't there, and that's now been put up
0:45:19 > 0:45:21and the bath fits in there lovely.
0:45:22 > 0:45:26And now the house... well, actually looks like a house.
0:45:26 > 0:45:28New bathroom, new kitchen,
0:45:28 > 0:45:32and every room rewired, re-plastered and redecorated.
0:45:33 > 0:45:36And I'm glad to see the back of that floating stairway.
0:45:36 > 0:45:38A lot safer now, don't you think?
0:45:40 > 0:45:42If you remember when you first came to the house,
0:45:42 > 0:45:44there was no walls downstairs.
0:45:44 > 0:45:46We put this one in and made a good living space.
0:45:46 > 0:45:50We also put this wall in and made a nice-sized downstairs toilet.
0:45:50 > 0:45:54And then this wall finally went in and made the good L-shaped kitchen.
0:45:54 > 0:45:57Really pleased with how it turned out.
0:45:57 > 0:46:00From what was once a shell, we've now got rooms and walls,
0:46:00 > 0:46:03made a lovely house that's ready to move into.
0:46:03 > 0:46:05Joe has certainly been busy.
0:46:05 > 0:46:07He's done a lot of the work himself,
0:46:07 > 0:46:09along with help from his builder dad.
0:46:09 > 0:46:12But mum Sally has helped as well.
0:46:12 > 0:46:14She helped design the kitchen with Joe,
0:46:14 > 0:46:16as well as doing some painting,
0:46:16 > 0:46:18and she looked after her two hard-working boys.
0:46:20 > 0:46:25I had to do all the cleaning after them. Fetch, carry, do the tea.
0:46:26 > 0:46:28- And that was it, really, wasn't it?- Yeah.
0:46:30 > 0:46:34Sally might well roll her eyes. The cleaning up is often the hard bit.
0:46:34 > 0:46:36With all the family helping out,
0:46:36 > 0:46:39plus a few other tradesmen for the plumbing and joinery work,
0:46:39 > 0:46:42they've managed to do a great job inside.
0:46:42 > 0:46:45So, what about outdoors and that overgrown garden?
0:46:45 > 0:46:48Well, we need to put a new fence in outside
0:46:48 > 0:46:50and turf the garden, really,
0:46:50 > 0:46:52but can't really do that at the moment,
0:46:52 > 0:46:54because the weather's not quite right.
0:46:54 > 0:46:57And we need to paint the soffits and drainpipes, don't we?
0:46:58 > 0:47:00- Yeah, suppose so.- Gutters.
0:47:00 > 0:47:02SHE LAUGHS
0:47:02 > 0:47:03MARTIN CHUCKLES
0:47:03 > 0:47:05That's right, Mum, you keep him right.
0:47:05 > 0:47:09In fact, that's exactly what she has been doing throughout the project.
0:47:09 > 0:47:12She's been a good support, to be honest.
0:47:12 > 0:47:15Probably about a month and a half into it, hit a bit of a lull,
0:47:15 > 0:47:19and she picked us back up and then we carried on, basically.
0:47:19 > 0:47:22Yeah, cos you've got to see it through to the end, haven't you?
0:47:22 > 0:47:24# First I stand and then I sit
0:47:24 > 0:47:27# Then I sit and stand a bit
0:47:27 > 0:47:29# But I can't stand much more of it
0:47:29 > 0:47:31# Oh, Mother, what'll I do now? #
0:47:31 > 0:47:35With just a few little snagging jobs left, he's almost done.
0:47:35 > 0:47:37So, what about budget, then?
0:47:37 > 0:47:40Has he gone over that 15 grand top-end estimate?
0:47:40 > 0:47:44Er, just under 14. So, it's come under-budget.
0:47:44 > 0:47:46But we've been able to do that
0:47:46 > 0:47:49because Joe's done a lot of the work himself,
0:47:49 > 0:47:52so obviously that makes it cheaper.
0:47:52 > 0:47:57That 14 grand budget, coupled with Joe's £85,000 purchase price,
0:47:57 > 0:47:59means he's spent a total of £99,000
0:47:59 > 0:48:01and created a four-bedroomed house
0:48:01 > 0:48:04from what was originally a three-bedroomed house.
0:48:04 > 0:48:06Will the agents be impressed?
0:48:07 > 0:48:09I think they've done an excellent job.
0:48:09 > 0:48:13It's been finished to an extremely high standard,
0:48:13 > 0:48:15and it's quite different.
0:48:15 > 0:48:18A lot of properties at the moment that have been refurbished
0:48:18 > 0:48:21are very similar, where this has...
0:48:21 > 0:48:25It's got quite a unique feel to it, the layout in which they've done it.
0:48:25 > 0:48:27It's good. It's obvious that the property's undergone
0:48:27 > 0:48:30a scheme of renovation over recent months,
0:48:30 > 0:48:32and it's pleasing to see that the work that's been done
0:48:32 > 0:48:34has been done to a good standard,
0:48:34 > 0:48:37which means the property's now in a very presentable condition,
0:48:37 > 0:48:39whether that be for sale or rental purposes.
0:48:39 > 0:48:44Excellent standard of finish. I can't see any fault with it at all.
0:48:44 > 0:48:46Been done to a really high standard throughout.
0:48:46 > 0:48:50It's been finished really well. I don't see any fault with it at all.
0:48:50 > 0:48:54We're all agreed that Joe and his family have done a cracking job,
0:48:54 > 0:48:57so what kind of rentals could this property achieve?
0:48:57 > 0:48:59For rental purposes,
0:48:59 > 0:49:03I'd imagine we'd be looking at about £750 per calendar month.
0:49:03 > 0:49:05For a rental valuation,
0:49:05 > 0:49:09you'd be looking in the region of £750 per calendar month.
0:49:09 > 0:49:12Right, OK. That's what we'd kind of expected.
0:49:12 > 0:49:17Although the agent that has got it has got it in for 795.
0:49:19 > 0:49:22A rental of £795 per calendar month
0:49:22 > 0:49:26would give them a really good yield of just over 9.5%.
0:49:26 > 0:49:29And since this is going to be Joe's pension,
0:49:29 > 0:49:32that's not a bad result at all.
0:49:32 > 0:49:36With the total spend of 99,000, what kind of resale value could it fetch?
0:49:36 > 0:49:39I would look to put this property on the market
0:49:39 > 0:49:44for a figure somewhere in the region between £155,000 and £165,000.
0:49:44 > 0:49:48I'd value this property at £155,000.
0:49:48 > 0:49:51Well, again, that was kind of what we were expecting.
0:49:51 > 0:49:54I had an estimate of 160, so it's not far off.
0:49:54 > 0:49:57Yeah, that's good, isn't it? That's good. That's good profit.
0:49:57 > 0:50:02Yes, Sally, it is. Between £56,000 and £66,000, in fact.
0:50:03 > 0:50:06But Joe is set on renting for now,
0:50:06 > 0:50:09safe in the knowledge that he's sitting on a nice little nest egg.
0:50:09 > 0:50:12It's been very worthwhile, and I'd definitely do it again.
0:50:12 > 0:50:15Maybe not straight away, but keep my eye out and see what's coming.
0:50:15 > 0:50:18- Yeah, we need a rest. Don't we?- Yeah.
0:50:22 > 0:50:25Well, it didn't look like there would be much rest
0:50:25 > 0:50:28for the buyers of this plot of land in Teynham
0:50:28 > 0:50:30that we saw sell earlier for £81,000.
0:50:30 > 0:50:32It came with planning permission
0:50:32 > 0:50:36for development of the site into five apartments.
0:50:36 > 0:50:38It was bought by cousins Tony and Mark,
0:50:38 > 0:50:41who own their own electrical contracting company.
0:50:41 > 0:50:45This was their first foray into developing, and it was a biggie.
0:50:45 > 0:50:48The funding needed a final sign-off,
0:50:48 > 0:50:51and the site was subject to an archaeological survey.
0:50:51 > 0:50:53What could possibly go wrong?
0:50:53 > 0:50:56Do you have a Plan B in case this doesn't work out?
0:50:56 > 0:50:59Not at present, but we don't look to Plan Bs,
0:50:59 > 0:51:00cos we always make Plan A work.
0:51:00 > 0:51:03OK, I like it. I like it, and let's hope Plan A does work.
0:51:03 > 0:51:05Let's hope you get the funding from the bank
0:51:05 > 0:51:07and when you start cutting back,
0:51:07 > 0:51:08there's nothing untoward in that site...
0:51:08 > 0:51:11- Let's hope so.- ..that's going to make you very miserable.
0:51:11 > 0:51:14- A pot of gold would be nice!- Pot of gold at the end of the rainbow!
0:51:14 > 0:51:16Well, I'm afraid to say that when we joined them
0:51:16 > 0:51:19a year and four months later, there was no buried treasure.
0:51:19 > 0:51:23But something magical has happened. A building has appeared.
0:51:23 > 0:51:25Wow, look at that!
0:51:25 > 0:51:31# Somewhere over the rainbow
0:51:32 > 0:51:36# Way up high
0:51:38 > 0:51:43# There's a land that I heard of... #
0:51:43 > 0:51:46Within this development, we've got five flats -
0:51:46 > 0:51:48four one-bedroom flats
0:51:48 > 0:51:50and a two-bedroom, which is on the top floor.
0:51:50 > 0:51:53Each flat is totally different to the other.
0:51:53 > 0:51:55They're very bespoke design.
0:51:56 > 0:51:58Well, I take my hat off to them.
0:51:58 > 0:52:01This is an amazing first development project.
0:52:01 > 0:52:04Each apartment has a slightly different layout
0:52:04 > 0:52:08and is finished with nice fixtures and fittings.
0:52:08 > 0:52:12The decoration is modern, stylish and just a perfect blank canvas
0:52:12 > 0:52:16for any new occupants to put their own stamp on.
0:52:16 > 0:52:18I really like the exterior design as well,
0:52:18 > 0:52:21which seems sympathetic to the conservation area.
0:52:22 > 0:52:24Mark and Tony didn't alter much
0:52:24 > 0:52:26from the approved plans that came with the land,
0:52:26 > 0:52:29as they would have had to reapply for permission,
0:52:29 > 0:52:32and those plans included these off-street parking spaces,
0:52:32 > 0:52:36which is a huge draw for any potential buyer.
0:52:36 > 0:52:39All this depended on an archaeological survey
0:52:39 > 0:52:43so, failing a pot of gold, did they find anything else?
0:52:44 > 0:52:48The road that we are on here was an old Roman road,
0:52:48 > 0:52:50and they find certain things,
0:52:50 > 0:52:52you know, bits of old horse and cart,
0:52:52 > 0:52:54or sometimes actually Roman villas.
0:52:54 > 0:52:58Luckily for us, there was nothing here, and I say luckily,
0:52:58 > 0:53:01because obviously if they find something
0:53:01 > 0:53:04then it, you know, opens up a can of worms.
0:53:04 > 0:53:08Well, it sounds like worms were the only thing that the survey dug up
0:53:08 > 0:53:11and it was lucky there was no treasure to be uncovered,
0:53:11 > 0:53:15because any historical discoveries could have delayed everything.
0:53:15 > 0:53:19So, was this first project as easy as it looked?
0:53:19 > 0:53:22It's been stressful, but a bit of a step into the unknown,
0:53:22 > 0:53:25so obviously that does heighten the stress levels.
0:53:25 > 0:53:29But really enjoyed it, I'm really pleased with the end product.
0:53:30 > 0:53:32Mark took the more office-based role,
0:53:32 > 0:53:35dealing with subcontractors and suppliers,
0:53:35 > 0:53:38whilst Tony looked after the site day-to-day.
0:53:38 > 0:53:40But they were constantly in touch on the phone,
0:53:40 > 0:53:43and I'm pleased to see they are still speaking!
0:53:43 > 0:53:47After all, a project like this can be a test for any relationship.
0:53:49 > 0:53:51Yes, we're definitely still friends,
0:53:51 > 0:53:55and the business is still going and we're carrying on as normal.
0:53:55 > 0:53:57So, nothing's changed there.
0:53:57 > 0:53:59Yeah, yeah, we managed to get through it.
0:53:59 > 0:54:03There was many ups and downs, as with any sort of work project.
0:54:03 > 0:54:06Like you say, this being our first one,
0:54:06 > 0:54:09a lot of things we was encountering was the first time of asking,
0:54:09 > 0:54:13if you like, so how we dealt with them, we weren't to know.
0:54:13 > 0:54:15But, yeah, we've managed to get it through,
0:54:15 > 0:54:19and we're both proud of the result that we've come up with in the end.
0:54:19 > 0:54:23# The boys are back in town again... #
0:54:23 > 0:54:27And so they should be. It's a really cracking job.
0:54:27 > 0:54:29So, what about the schedule, then?
0:54:29 > 0:54:31They hoped originally it would take 12 months.
0:54:32 > 0:54:38The whole scheme has taken around 15 months. We got held up with...
0:54:38 > 0:54:43preparation, because you've got to prepare first right,
0:54:43 > 0:54:45otherwise, you know, you come unstuck in the end.
0:54:45 > 0:54:48We had to put the relevant finances in place,
0:54:48 > 0:54:50which took a little bit longer than what we thought,
0:54:50 > 0:54:53and the building work has actually gone a little bit quicker.
0:54:53 > 0:54:56We was thinking about ten months at first.
0:54:56 > 0:54:59We then had a programme of six, and completed in seven,
0:54:59 > 0:55:02which we thought was really quite good.
0:55:02 > 0:55:03So, what about the budget, then?
0:55:03 > 0:55:05They originally thought they'd have to spend
0:55:05 > 0:55:10between £250,000 and £270,000 to build the apartment block.
0:55:10 > 0:55:12But I'm guessing that a project like this...
0:55:12 > 0:55:16well, it would be easy to see that just rocket.
0:55:16 > 0:55:20I do believe we've probably overspent by about 10%,
0:55:20 > 0:55:22which we did have in as a contingency.
0:55:22 > 0:55:26In the main, including the cost of the land,
0:55:26 > 0:55:32we've probably had a total spend of about 370 to 350, so...
0:55:32 > 0:55:36Mark and Tony bought the land for 81,000,
0:55:36 > 0:55:41so at their top estimate, the build has cost them around £290,000.
0:55:41 > 0:55:45Given the finish, I don't think that's unexpected.
0:55:45 > 0:55:49But what will two local property experts
0:55:49 > 0:55:51think these flats bring to the local market?
0:55:53 > 0:55:56The look of the building's obviously keeping in contention
0:55:56 > 0:55:59with the villagey style, which is obviously quite a nice touch.
0:55:59 > 0:56:02It doesn't look like a brand-new build from the outside,
0:56:02 > 0:56:03even though it is.
0:56:03 > 0:56:05All five apartments have been finished to a good standard,
0:56:05 > 0:56:07and I think will appeal to the market.
0:56:07 > 0:56:09Well, the standard of the finish is extremely high
0:56:09 > 0:56:12compared to a lot of the other properties you get nowadays,
0:56:12 > 0:56:15but the standard of the finishing is extremely good.
0:56:15 > 0:56:18The parking's a real bonus - buyers are going to be keen to know
0:56:18 > 0:56:20that they can get their car off the street
0:56:20 > 0:56:23and that it should be in a secure location.
0:56:24 > 0:56:26Onto figures, then.
0:56:26 > 0:56:29Will the resale values of the five flats
0:56:29 > 0:56:35be more than the top total spend here, which was 370,000?
0:56:35 > 0:56:38I would expect flat one, on the ground floor,
0:56:38 > 0:56:41which is the smallest flat and it's the closest to the road,
0:56:41 > 0:56:43I'd expect that value
0:56:43 > 0:56:46to be somewhere between £105,000 and £110,000.
0:56:46 > 0:56:50Flat two and three, the one-beds on the first floor,
0:56:50 > 0:56:55will be looking to achieve around £110,000 to £115,000.
0:56:55 > 0:56:58And then flat four, to the rear of the building,
0:56:58 > 0:56:59which is a quieter location,
0:56:59 > 0:57:04is probably going to have a value of around £125,000.
0:57:04 > 0:57:08And the two-bed will be looking to achieve £135,000.
0:57:08 > 0:57:14Those top figures give a total of £600,000,
0:57:14 > 0:57:21so that means a possible profit of £230,000, minus taxes and expenses.
0:57:21 > 0:57:23So, what do the boys think of that?
0:57:23 > 0:57:25We're pleased in that vein
0:57:25 > 0:57:27that they are what we expected and not lower, obviously.
0:57:27 > 0:57:30Would have been great to have been higher.
0:57:30 > 0:57:33But, no, that's what we've worked our budgets on throughout the project,
0:57:33 > 0:57:34round about them figures.
0:57:34 > 0:57:39So, yeah, we'll be pleased if we can sell them on for within that range.
0:57:39 > 0:57:43So, their first property project together has been a great success.
0:57:43 > 0:57:48A healthy profit and friendship intact. So, what's next, boys?
0:57:48 > 0:57:50I think we need to take a little step back,
0:57:50 > 0:57:54get this one all signed and sealed and sold,
0:57:54 > 0:57:57and then take a little bit of time, I think, just to relax,
0:57:57 > 0:58:00before we move onto the next one, to make sure we make a wise choice.
0:58:00 > 0:58:01Yeah, exactly.
0:58:04 > 0:58:05Well, that's all for now.
0:58:05 > 0:58:09Did we inspire you, or did we put you off trying for yourselves?
0:58:09 > 0:58:13We will have more properties for you next time on Homes Under The Hammer.
0:58:13 > 0:58:14- See you, then.- Goodbye.